How does Opendoor work | Opendoor – How it works | iBuyer
Articles,  Blog

How does Opendoor work | Opendoor – How it works | iBuyer

What’s up friends today we’re talking
about ibuyers what are they? How do they work? And should you use them to
sell your home? Coming up next! So first things first what is an ibuyer? An ibuyer is a company such as Zillow or Opendoor that buys homes
directly from homeowners without the use of a real estate agent.
What they’re touting is an easy seamless transaction. Some of the benefits of
using an ibuyer are you get an instant offer, you don’t have to deal
with showings and you can usually set the date of your closing. So it allows
you to help determine when you’re going to move. All of these things are awesome
and you know what, in the right situation I agree going with an ibuyer might
make the most sense, I also think it makes sense when selling something as
valuable as your home to look at all the options. Here’s also some of the
negatives that can be associated with ibuyers. So the way ibuyers work is
they use an algorithm to determine the value of your home much like you see on
Zillow with their zestimates feature. And then they make you an offer on the
home and you either accept it or reject it there’s no negotiating. So what you
lose here is the ability to drive up the price, you can’t get multiple offers and
have people go up higher and higher, you get one number and it’s either an accept
or reject. And honestly from what I’ve heard Opendoor for example usually does
make you a fair offer, but again I don’t believe it’s the best offer you’re gonna
get because there’s no competition, there’s no supply and demand. The next
potential stumbling block is the home inspection. In a traditional home sale
the buyer would get a home inspection and then depending on what comes back
the seller and buyer would go back and forth and negotiate a resolution. In this
situation though ibuyers get a home inspection and they come to you and
basically say here are the problems you can either fix the problems or we’re
going to reduce the price of our offer by X amount of dollars. So again you’re
losing that negotiating power, you’re using losing the ability to get the
price that you want and deserve. So that’s something to be aware of if
you’re gonna go with an ibuyer. The final thing to be aware of if you’re
using an ibuyer is finding how much they charge. It’s my understanding that
many times they’re charging upwards of 10 percent or more to buy your home so
suddenly that fair offer you got doesn’t look so fair when 10 percent is coming
right off the top. And listen all that to say I don’t think ibuyers are bad, from
what I’ve heard Opendoor is in 20 markets and their market share has risen
in every single one, that wouldn’t be the case if they were some terrible entity.
I just don’t think right now the way they’re set up ges sellers the most
money from your home and I think that’s what most sellers want is the most money,
especially if they’re losing tens of thousands of dollars. But I’d love to
know what your thoughts are, leave me a comment below, have you used an ibuyer,
have you considered it or if you’re selling in the future is it something
you’ll look into. I would love to know and be sure to LIKE and subscribe to
this page. I put out new content every Tuesday so check back next Tuesday.
Thanks so much for watching and remember be good out there, and if you can’t be
good be careful!


Leave a Reply

Your email address will not be published. Required fields are marked *